Purchase of real estate – Property Residence Visa
The purchase of a real estate property can also facilitate acquiring
a residence visa in the UAE. Properties based in the emirate of Dubai provide for residence visas, which are renewable every two years. For properties outside of Dubai, the property owner can apply and obtain a multiple entry visit visa renewable every six months. The property owner can then sponsor their family members. Some of the conditions of the property visa are as follows:
1. The value of the residential property( after deducting the mortgaged amount outstanding) should be more than AED 1 million( about US $ 275,000).
2. The property owner must have a monthly income of no less than AED 10,000 or its equivalent in foreign currency. 3. The property must also be completed and suitable to live in. 4. Only one person can apply for residency with a given property, even if ownership is deemed to be held jointly.
Acquiring property in Dubai
The UAE has been experiencing declining sales prices and rents as new residential supply continues to focus largely on the affordable segment. This provides the opportunity for end users to enter the market and become home owners. Certain Dubai residential developers have started to offer payment plans phased over two or three years to service the mid-market segment. Potential investors can also access real estate finance in Dubai on very competitive terms. Since the 2008 property crisis, Dubai has put in place a number of bold steps to prevent speculation and protect investors and home owners:
• The transfer fee for each property transaction has increased from 2 % to 4 % of the property value, well below rates
applicable in other jurisdictions – for example, France( 6 %) and the UK( 4 – 15 %)
– to prevent speculation, and maintain a stable market.
• The Real Estate Regulatory Agency( RERA) has been established as a regulator of all real estate operators and projects.
• RERA publishes a rental index that outlines the percentages of maximum property rent increase that are allowed upon renewal of tenancy contracts.
• Developers need to maintain escrow accounts, providing protection to mortgagees of off-plan purchases.
• Credit bureaux give UAE banks access to consumer credit information, reducing exposure to risky borrowers and offering improved terms to borrowers with better credit profiles.
Helping you set up or relocate in the UAE
With over eight years’ presence in Dubai, ABAX UAE assists companies and individuals to relocate in Dubai. We help with all visa and business application procedures, and will deal with the relevant authorities on your behalf. We have also built specific expertise helping companies to set up in UAE ' s free zones and assisting them with their ongoing compliance and administration requirements.
For more information, please contact:
Nousrath Bhugeloo Partner
Nina Auchoybur Managing Director ABAX UAE
nousrath. bhugeloo @ abaxservices. com nina. auchoyburl @ abaxservices. com www. abaxservices. com
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